The Union Cabinet on Wednesday approved capital infusion of Rs12,450 crore for three state run insurance companies - the Oriental Insurance Company, the National Insurance Company and the United India Insurance Company.
The approved amount also includes Rs2,500 crore infused in FY19-20.
In the last budget on February 1, the government had set aside Rs 6,950 crore for recapitalisation of the three public sector general insurance companies.
Experts have time and again sought capital infusion in the state-run insurers as they are undercapitalised.
The government also looks to improve the solvency ratio of these companies before merging the three entities to create a general insurance giant.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.